Description
BSE updates the list of securities under Enhanced Surveillance Measure framework, adding 4 new securities, moving 3 to higher stages, and providing consolidated list of all securities under ESM stages.
Summary
BSE has updated the Enhanced Surveillance Measure (ESM) Framework effective January 7, 2026. Four new securities have been added to the ESM framework, three existing securities are being moved to higher ESM stages, and no securities are being moved to lower stages or removed from the framework. The circular provides annexures detailing new additions, stage movements, securities moving out (nil), and a consolidated list of all 26+ securities currently under ESM surveillance.
Key Points
- 4 securities newly shortlisted in ESM Framework: Aerpace Industries Ltd, Kinetic Trust Ltd, Mach Conferences And Events Ltd (SME), and Mayur Leather Products Ltd
- 3 securities moving to higher ESM stages: ABM Knowledgeware Ltd, CMX Holdings Ltd, and Shentracon Chemicals Ltd
- No securities moving to lower ESM stages
- No securities moving out of ESM Framework
- Consolidated list includes at least 26 securities under various ESM stages (Stage I and Stage II)
- ESM framework includes both main board and SME scrips
Regulatory Changes
The Enhanced Surveillance Measure framework continues BSE’s risk management approach for securities exhibiting abnormal price movements or other market integrity concerns. Securities under ESM are subject to:
- Additional surveillance and monitoring
- Staged approach with escalating measures
- Trade-for-trade settlement in some cases
- Price bands and other trading restrictions
The framework operates in multiple stages (Stage I, Stage II, etc.) with progressively stringent measures as securities move to higher stages.
Compliance Requirements
- Trading members must be aware of securities under ESM framework
- Enhanced due diligence required for client orders in ESM securities
- Clients must be informed about ESM status and associated restrictions
- Settlement obligations must be met on trade-for-trade basis where applicable
- Members should monitor for stage changes of securities under surveillance
Important Dates
- Effective Date: January 7, 2026 - All ESM changes take effect
- Circular Date: January 6, 2026
Impact Assessment
Market Impact: The addition of 4 new securities and upward movement of 3 securities to higher ESM stages indicates continued surveillance concerns for these scrips. Investors in these securities will face:
- Increased trading restrictions
- Trade-for-trade settlement requirements
- Potential price bands and position limits
- Reduced liquidity due to surveillance measures
Investor Impact: Shareholders of affected securities should expect lower liquidity and potential difficulty in executing trades. The ESM framework serves as a warning signal about concerns regarding price volatility, corporate governance, or other irregularities.
Operational Impact: Trading members need to update their surveillance systems and client communication protocols. The consolidated list of 26+ securities under ESM requires ongoing monitoring and compliance checks by brokers and market participants.
Securities Newly Added to ESM (Stage I)
- Aerpace Industries Ltd (534733, INE175N01023)
- Kinetic Trust Ltd (531274, INE674M01019)
- Mach Conferences And Events Ltd (544248, INE0UYT01018) - SME Scrip
- Mayur Leather Products Ltd (531680, INE799E01011)
Securities Moving to Higher ESM Stage
- ABM Knowledgeware Ltd (531161, INE850B01026) - Moving to Stage II
- CMX Holdings Ltd (532217, INE027F01014) - Moving to higher stage
- Shentracon Chemicals Ltd (530757, INE0OUS01011) - Moving to higher stage
Impact Justification
Affects specific securities under surveillance with trading restrictions, but represents routine regulatory monitoring activity with limited broader market impact